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Cannabis Stocks Tumble as Marijuana Index Drops 13 Points

By Brandon A. Dorfman

Nov 29, 2017

Cannabis stock prices tumbled today as the North American Marijuana Index took a nosedive. The Index dropped almost eight percent as unknown market forces at this time spooked investors. Closing at 173 on Tuesday, the Marijuana Index fell nearly 13 points to 160.50. Canadian stocks were mostly to blame, as the U.S. Index held relatively steady for the second day in a row.

United States Index

The U.S. Marijuana Index closed at 64.35 on Tuesday, with minimal movement throughout the day Wednesday. As reported yesterday, the Justice Department’s renewed “War on Marijuana” is creating confusion across the industry, with state-level legalization coming into conflict with the federal ban on cannabis. Markets remained relatively stable today, closing at 63.04 for a negligible loss of half of a percentage point.

Canadian Index

The Canadian Marijuana Index saw steep losses Wednesday, completely erasing the gains made just 24 hours earlier. After closing at 436.79 on Tuesday, the Index dropped nearly 12 percent. It was a disappointing performance for an Index that has seen a 34 percent gain since the end of October. The Canadian Marijuana Index closed at 390.63 on Wednesday.

On the other hand, losses were seen across the Index in every sector. Aurora Cannabis Inc. (ACB:CA) price dropped .890, a loss of 11.34 percent. Cronos Group Inc. (MJN:CA) fared a little bit better, losing .390, an 8.61 percent drop. Rounding out the losses today was Maricann Group Inc. (MARI:CNX), who saw a price drop of .360, a loss of over 15 percent.